Citi outlines Vietnam’s economic rebound and challenges

At a seminar held on Wednesday in Ho Chi Minh City, Citi provided a comprehensive overview of Vietnam’s economic resurgence and the hurdles it faces. The event, titled “Prospect for Recovery Amid a Dynamic Global Outlook,” delved into various sectors that are witnessing a recovery, as well as those that are still confronting challenges.

Citi economists reported significant improvements in Vietnam’s export-oriented sectors such as electronics, textiles, and footwear, alongside domestic industries including metals and cement. They highlighted the positive impact of China’s border reopening on Vietnam’s exports and retail sales. Despite these advances, they noted that textile and footwear exports to the U.S. have not yet returned to the previous year’s levels.

The tourism sector’s recovery was also addressed, with international arrivals in October reaching 69% of pre-pandemic figures, indicating a gradual return of global travelers to Vietnam. However, the real estate sector is experiencing a slower recovery due to ongoing supply-demand mismatches.

Citi also underscored the nation’s economic resilience and its ability to navigate through challenges, ensuring continued growth. This message reflects confidence in Vietnam’s economic trajectory despite some sectors lagging behind in their recovery.

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